Upgrade from Licensed to Certified Residential

This license upgrade program is a package of three courses as follows:

Course Description

This course provides the residential appraisal student with the opportunity to think beyond basic residential appraisal assignments and consider the appraisal of complex properties using advanced methods and techniques. In the first unit, the complex property is defined and identified by virtue of property characteristics, market conditions and/or ownership interests. The requirement that the appraiser of a complex property carefully think through the problem identification and scope of work processes, in particular, is stressed. Examples are given of issues that may escape the appraiser’s attention unless the appraiser is very deliberate and careful to recognize these potential pitfalls. Although there are still only three valuation methods available (Sales Comparison, Income, and Cost Approaches to Value), the appraiser must learn how to implement those approaches in creative ways when the assignment does not allow the freedom and flexibility he or she enjoys in typical, simpler assignments. Basic appraisal and reporting principles are revisited as necessary and used as signposts to remind the appraiser of the responsibilities inherent in the appraisal of complex properties. In the second unit, the student is challenged to think through and solve various case studies involving the appraisal of properties that are complex due to property characteristics, ownership interests, and/or market conditions. Although the student must “crunch numbers”, the emphasis is actually on thinking through the problem identification and problem solving processes. The student is reminded that in the changing appraisal profession, a reduced scope of work (“drive-by appraisal”) doesn’t necessarily make for a simpler assignment because property characteristics may be difficult to determine. In the case of ownership interests other than fee simple, the student is reminded of what value is and what must be present for value to exist. When appraising in the midst of changing (and challenging) market conditions – or anticipated changes -- the student is reminded of the vital steps of knowing and analyzing the market as it reacts to the forces impacting it, and forming a prospective value opinion that effectively projects the evolving market conditions for a future date.

Objectives:

1. Property characteristics that might make a property complex
2. Ownership interests that might make a property complex
3. Market conditions that might make a property complex
4. The importance of slowing down and thinking clearly when appraising complex properties
5. How to determine ways a property can be appraised when typical methods are not possible
6. The responsibilities of the appraiser regarding competency
7. The importance of problem identification in order to determine scope of work and competency
8. The role of extraordinary assumptions, hypothetical conditions, and supplemental standards in the appraisal of complex properties
9. The appraisal development rules as they relate to the appraisal of complex properties
10. The appraisal reporting rules as they relate to the appraisal of complex properties
11. To recognize and correctly complete complex assignments resulting from reduced scope of work requirements that make it difficult to identify property characteristics
12. To appraise a property with an encumbered ownership interest, such as a life estate
13. To correctly identify the many complex issues and implications resulting from a property with overimproved characteristics as well as significant market changes in the near (and distant) future

Course Description

This course provides an in-depth look at statistical analysis, mathematical modeling and the principles of real estate finance. It teaches skills that are appropriate for appraisal of both residential and income producing properties. The primary focus will be on residential applications. The course is structured to conform to the 2008 Real Property Appraiser Qualification Criteria established by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. It is part of the Required Core Curriculum. Starting with a discussion and examples explaining the importance of statistical analysis for real property appraisers, it progresses through such topics as descriptive and inferential statistics, graphical analysis, measures of central tendency, and measures of dispersion. Then, mathematical and valuation modeling are demonstrated. In this same section, AVM’s are also covered, along with linear regression and multiple regression analysis. The last section will investigate the history of financing and the flow of funds. The role of the Federal Reserve System will be explored, along with how mortgages work. There will be extensive analysis of mortgage types, terms, and calculations showing the effects of changes in terms of payment patterns. An HP 12C calculator will be required for this course. Keystroke solutions will be provided throughout the course for the many statistical and financial problems employed. There is a required 60-minute exam at the end that must be taken in a proctored setting.

Objectives:

1. Relate instances in which statistics can be helpful to appraisers
2. Distinguish between descriptive and inferential statistics.
3. Describe graphic analysis
4. Perform basic functions on an HP 12C calculator
5. Calculate a mean
6. Calculate a median.
7. Define a mode
8. Summarize the characteristics of each of the three measures
9. Describe sampling techniques
10. Define and illustrate a range
11. Calculate an average deviation
12. Calculate a standard deviation
13. Describe the characteristics of a normal distribution
14. Describe and illustrate inferential statistics
15. Calculate areas under a normal curve
16. Describe the use of a coefficient of determination
17. Demonstrate linear regression
18. Describe and illustrate mass appraisals
19. Define and illustrate AVM’s
20. Be familiar with the supply and demand for money
21. Be familiar with sources of capital
22. Summarize the functions of the Federal Reserve Board
23. Describe the workings of the secondary mortgage market
24. Describe various kinds of creative financing
25. Describe and illustrate compounding and discounting
26. Calculate the Six Functions of a Dollar with the 12C calculator
27. Calculate mortgage payments
28. Create an amortization table
29. Calculate a balloon payment
30. Calculate the market value of a loan

Course Description

Course Description This course looks at four specialized areas of appraisal practice: Environmental issues Appraising 2- to 4-family residential properties Appraising manufactured homes Narrative report writing It is structured to conform to the 2008 Real Property Appraiser Qualification Criteria established by the Appraiser Qualifications Board of the Appraisal Foundation. This course is part of the Required Core Curriculum to become a Certified Residential or Certified General Appraiser. Section 1 begins with a description of three environmental problems that an appraiser may encounter: radon, mold, and lead paint. It also investigates environmental issues such as indoor air pollutants, wetlands, brownfields and indoor air pollutants. Then environmental reporting is addressed. The second and third parts cover how to appraise specialized property types. First, the process of appraising 2- to 4-unit residential properties is covered in detail. Then, manufactured homes are defined, illustrated and the appraisal process for them is detailed. The final section addresses narrative report writing and wraps up the reporting processes for all property types. There is a required two-hour exam at the end that must be taken in a monitored classroom setting.

Objectives:

1. Recognize the hazards posed by radon and how to test for radon
2. Summarize procedures for radon mitigation
3. Describe molds and recognize conditions that promote mold growth
4. Recognize the hazards posed by lead
5. Recognize the hazards posed by asbestos
6. Recognize the hazards posed by Underground Storage Tanks (UST’s)
7. Recognize and describe wetlands and their regulation
8. Be familiar with Superfund sites
9. Relate recent efforts to revitalize brownfields
10. Understand various kinds of indoor air pollutants
11. Report environmental conditions in the URAR
12. Understand environmental issues in the Fannie Mae and Freddie Mac guidelines and be familiar with FHA and VA requirements concerning environmental problems
13. Distinguish among various kinds of factory built homes
14. Relate the differences between modular and manufactured homes
15. List at least three characteristics of a manufactured home
16. Describe a HUD label and HUD data plate
17. Summarize titling procedures for manufactured housing
18. Recognize Fannie Mae, Freddie Mac, FHA and VA guidelines for manufactured housing
19. Recognize differences between the URAR and the 1004C appraisal form
20. Recognize procedures for a cost approach for a manufactured home using the Marshall & Swift Residential Cost Handbook and Residential Estimator 7
21. Recognize procedures for a cost approach for a manufactured home using N.A.D.A. Guide book manual and software program
22. Recognize differences between the URAR and the 1025 appraisal form
23. Complete the three valuation approaches on a 1025 appraisal form
24. Understand the Multi-unit guidelines for Fannie Mae, Freddie Mac, FHA, and VA
25. Have a basic understanding of effective writing
26. Recognize sentence structure and parts of speech
27. Be able to employ methods and techniques of writing in a concise manner
28. Be familiar with STANDARD 2 and the elements of Self-Contained Appraisal Reports
29. Be familiar with the parts of a narrative appraisal report